77.16(1)(1) In this section "department" means the department of natural resources.
77.16(2)
(2) The owner of 10 acres or more may file with the department an application setting forth a description of the lands which the owner desires to place under the woodland tax law and on which land the owner will practice forestry. Applications received prior to May 1 each calendar year shall be processed for entry by November 20 of that calendar year. Lands which include an entire quarter-quarter section, fractional lot or government lot as determined by U.S. government survey plat, excluding public roads and railroad rights-of-way that may have been sold, are not eligible for entry. Lands within recorded and filed plats or the incorporated limits of cities or villages are not eligible for entry, but lands subject to a woodland tax law agreement located in a town which incorporates as a city after the agreement was entered into remain in effect. Lands on which an improvement is located having an assessed value in itself are not eligible for entry.
77.16(3)
(3) Upon filing of such application the department shall examine the land, and if it finds that the facts give reasonable assurance that the woodland is suitable for the growing of timber and other forest products and the lands are not more useful for other purposes and the landowner agrees to follow an approved management plan the department shall enter an order approving the application. A copy of such order shall be forwarded to the owner of the land, to the supervisor of equalization of the district wherein the land is located, to the clerk and the assessor of the town and to the clerk and register of deeds of the county wherein the land is located. The register of deeds shall record the entry and declassification of woodland tax lands in a suitable manner on the county record. The register of deeds may collect recording fees under
s. 59.43 (2) from the owner.
77.16(4)
(4) The application of the owner of the land, the signed management plan and the filing of the order by the department shall constitute a contract, running with the land, for a period of 15 years, unless terminated as provided in this section. Any order issued on or before November 20 of any year shall take effect on January 1 of the following calendar year, but all orders issued after November 20 shall take effect January 1 of the calendar year following the calendar year in which orders issued on or before November 20 would have been effective. Any contract under this section may be renewed by mutual consent of the parties at the end of its term, notwithstanding the fact that the town in which the land subject to the contract is located was incorporated as a city during the term of the contract. If at the end of 15 years the contract is not renewed by mutual consent, the land is declassified and shall be removed from the provisions of this section.
77.16(5)
(5) The assessor shall reduce the total assessed valuation of each description by an amount equal to the assessed value of the acreage entered. The local assessor in preparing the assessment roll shall show the acreage for each owner covered under this section in a column designated by the words "Woodland Tax Law" or the initials "WTL".
77.16(6)
(6) The owner shall be liable and shall pay to the taxation district or city treasurer a tax computed at the rate of 20 cents per acre on all lands entered prior to 1977. All owners shall pay that tax on or before January 31. On all lands entered or renewed after December 31, 1976, the rate shall be 40 cents per acre through 1982. In 1982 and at 10-year intervals thereafter the per acre rate shall be recalculated using the method specified in
s. 77.04 (2) and rounded to the nearest cent. Such acreage tax shall be subject to collection in the same manner as is the forest croplands tax under
s. 77.04 (2).
77.16(7)
(7) The owner of the land shall follow the management plan and shall prohibit grazing and burning on lands entered under the woodland tax law. The management plan may be revised by the owner with the consent of the department. The department may at any time cause an investigation to be made as to whether lands may continue to be classified under this section. If the department finds that the owner has not complied with the law, or if the land is no longer used for forestry purposes, it shall issue an order removing the land from the woodland tax law classification. An owner may elect to withdraw lands from under this section by filing with the department a declaration of withdrawal for any entire entry. Contracts under the woodland tax law shall be conveyed with the land to the new owner. Conveyance of lands resulting in partition of the lands under a woodland tax law contract shall be cause for declassification. Any declassification order issued on or before November 20 of any year shall take effect on January 1 of the following calendar year but all declassification orders issued after November 20 shall take effect January 1 of the calendar year following the calendar year in which declassification orders issued on or before November 20 would have been effective. A copy of the declassification order shall be sent to the owner of the land, to the supervisor of equalization of the district wherein the land is located, to the clerk and the assessor of the town or city, and to the clerk and register of deeds of the county wherein the land is located.
77.16(8)
(8) The owner, town board or county board may petition the department for a public hearing to take testimony and hear evidence on whether lands shall be entered under this section. An owner, town board, city council or county board may petition the department for a public hearing on whether lands should be continued under this section. Upon the filing of a petition the department shall set the matter for public hearing at such time and place as it sees fit, but not later than 90 days from the date of filing of the petition. The department shall give 30 days' written notice of the hearing to the petitioners. The hearing may be adjourned for 60 days. The presiding officer at the hearing may be an employee of the department designated by the department to conduct the hearing.
77.16(9)
(9) After hearing all the evidence and after making such independent investigation as it sees fit the department shall make its findings of fact and make and enter an order within 60 days after the final adjournment of the hearing. Copies of the order shall be forwarded to the owner of the land, to the supervisor of equalization of the district wherein the land is located, to the clerk and the assessor of the town or city, to the county clerk and register of deeds and to the petitioner if not included above.
77.16(10)
(10) The department shall furnish appropriate forms to the owners of lands interested in entry of lands under the woodland tax law.
77.16(11)
(11) On declassification as a result of actions under
sub. (7) the owner shall be liable for payment of a penalty to the town or city treasurer. The payment shall be calculated by the department at a rate of one percent of the average full value per acre of the productive forest land classes under
s. 70.32, in the year before declassification in the county where the land is located, for each acre for each year the acreage remained under the provisions of this section. The full value of the productive forest land classes shall be determined each year by the department of revenue. The department shall notify the town or city clerk of the amount of the penalty together with the order of declassification. The penalty shall be included in the owner's next tax bill.
77.16(11m)
(11m) The owner shall not be liable for payment of a penalty if declassification is a result of the transfer of the land to the federal government, the state or a local governmental unit, as defined in
s. 66.0131 (1) (a), for a public road, railroad, utility right-of-way, park, recreational trail, wildlife or fish habitat area or a public forest.
77.16(12)
(12) The owner shall not be liable for payment of a penalty if declassification is a result of the owner's failure or refusal to renew the contract at the end of the contract period.
77.16(13)
(13) Any decision made by the department under this section is subject to review under
ch. 227.
77.16(14)(a)(a) On and after July 20, 1985, no person may apply to the department to place any land under this section.
77.16(14)(b)
(b) On and after January 1, 1986, the department may not act on any application under this section, issue any order placing land under this section or enter into a renewal of any agreement under this section.
77.16 Cross-reference
Cross Reference: See also ch.
NR 302.03, Wis. adm. code.
77.16 Annotation
Detached parcels of less than 40 acres are eligible for entry under the woodland tax law. 58 Atty. Gen. 8.
77.17
77.17
Contracts for land in the lower Wisconsin state riverway. An owner of timber that is exempt under
s. 30.44 (3) (c) 1. shall comply with a rule regulating timber cutting and harvesting promulgated under
s. 30.42 (1) (d):
77.17(2)
(2) If the owner agrees to modify the contract entered into under
s. 77.03 or
77.16 (4) to require compliance with the rules.
77.17 History
History: 1989 a. 31.
REAL ESTATE TRANSFER FEE
77.21
77.21
Definitions. In this subchapter:
77.21(1)
(1) "Conveyance" includes deeds and other instruments for the passage of ownership interests in real estate, including contracts and assignments of a vendee's interest therein, including instruments that are evidence of a sale of time-share property, as defined in
s. 707.02 (32), and including leases for at least 99 years but excluding leases for less than 99 years, easements and wills.
77.21(1e)
(1e) "Mergers of corporations" means the merger or combination of 2 or more corporations, nonstock corporations, limited liability companies, or limited partnerships, or any combination thereof, under a plan of merger or a plan of consolidation permitted by the laws that govern the entities.
77.21(1k)
(1k) "Partition" means the division among several persons of real property, including noncontiguous real property, that belongs to them as co-owners.
77.21(1m)
(1m) "Real estate" includes, but is not limited to, fixtures; roots, vines and trees of perennial crops; stock in a cooperative building; improvements on leased land; timber; and minerals.
77.21(2)
(2) "Register" means the register of deeds for the county in which particular real estate is located.
77.21(3)(a)
(a) In the case of any conveyance not a gift, the amount of the full actual consideration paid therefor or to be paid, including the amount of any lien or liens thereon; and
77.21(3)(b)
(b) In case of a gift, or any deed of nominal consideration or any exchange of properties, the estimated price the property would bring in an open market and under the then prevailing market conditions in a sale between a willing seller and a willing buyer, both conversant with the property and at prevailing general price levels.
77.21 Cross-reference
Cross Reference: See also ch.
Tax 15, Wis. adm. code.
77.21 Annotation
A memorandum announcing a reorganization of a land-owning partnership into a limited liability company and that the LLC was now the owner of the real estate was a document intended to transfer title to real estate. The receipt by members of ownership interests in the LLC was for value so that there was a conveyance under sub. (1) subject to taxation under s. 77.22. Wolter v. DOR,
231 Wis. 2d 651,
605 N.W.2d 283 (Ct. App. 1999).
77.22
77.22
Imposition of real estate transfer fee. 77.22(1)
(1) There is imposed on the grantor of real estate a real estate transfer fee at the rate of 30 cents for each $100 of value or fraction thereof on every conveyance not exempted or excluded under this subchapter. In regard to land contracts the value is the total principal amount that the buyer agrees to pay the seller for the real estate. This fee shall be collected by the register at the time the instrument of conveyance is submitted for recording. Except as provided in
s. 77.255, at the time of submission the grantee or his or her duly authorized agent or other person acquiring an ownership interest under the instrument, or the clerk of court in the case of a foreclosure under
s. 846.16 (1), shall execute a return, signed by both grantor and grantee, on the form prescribed under
sub. (2). The register shall enter the fee paid on the face of the deed or other instrument of conveyance before recording, and, except as provided in
s. 77.255, submission of a completed real estate transfer return and collection by the register of the fee shall be prerequisites to acceptance of the conveyance for recording. The register shall have no duty to determine either the correct value of the real estate transferred or the validity of any exemption or exclusion claimed. If the transfer is not subject to a fee as provided in this subchapter, the reason for exemption shall be stated on the face of the conveyance to be recorded by reference to the proper subsection under
s. 77.25.
77.22(2)
(2) The secretary of revenue shall prescribe the form required under
sub. (1). The form shall include an application for a credit under
s. 79.10 (5) and shall provide for the submission of the following:
77.22(2)(a)
(a) The value of the ownership interest transferred by the instrument of conveyance.
77.22(2)(b)
(b) The amount of the fee payable under this section.
77.22(2)(e)
(e) The financing terms under which agricultural land is transferred that are relevant to determining only the value of the property.
77.22(2)(f)
(f) Any other information the secretary requires.
77.22 Annotation
The transfer by all owners of property held as a in tenancy in common to a partnership consisting of all the original tenants in common was a taxable conveyance. DOR v. Mark,
168 Wis. 2d 288,
483 N.W.2d 302 (Ct. App. 1992).
77.22 Annotation
A memorandum announcing a reorganization of a land-owning partnership into a limited liability company and that the LLC was now the owner of the real estate was a document intended to transfer title to real estate. The receipt by members of ownership interests in the LLC was for value so that there was a conveyance under s. 77.21 (1) subject to taxation under sub. (1). Wolter v. DOR,
231 Wis. 2d 651,
605 N.W.2d 283 (Ct. App. 1999).
77.23
77.23
Disposition of fees and returns. On or before the 15th day of each month the register shall submit to the county treasurer transfer fees collected together with the returns filed in the office during the preceding month for the treasurer's transmission to the department of revenue under
s. 77.24 and shall submit to the county treasurer, or to the city treasurer if the property is located in a city that collects taxes under
s. 74.87, all applications for credits under
s. 79.10 (5) that the county register of deeds receives during the preceding month.
77.24
77.24
Division of fee. Twenty percent of all fees collected under this subchapter shall be retained by the county and the balance shall be transmitted to the state. Remittances shall be made monthly by the county treasurers to the department of revenue by the 15th day of the month following the close of the month in which the fee was collected. The remittance to the department shall be accompanied by the returns executed under
s. 77.22.
77.24 History
History: 1977 c. 29;
1981 c. 20.
77.25
77.25
Exemptions from fee. The fees imposed by this subchapter do not apply to a conveyance:
77.25(2)
(2) From the United States or from this state or from any instrumentality, agency or subdivision of either.
77.25(2g)
(2g) By gift, to the United States or to this state or to any instrumentality, agency or subdivision of either.
77.25(2r)
(2r) Under
s. 236.29 (1) or
(2) or
236.34 (1) (e) or for the purpose of a road, street or highway, to the United States or to this state or to any instrumentality, agency or subdivision of either.
77.25(3)
(3) Which, executed for nominal, inadequate or no consideration, confirms, corrects or reforms a conveyance previously recorded.
77.25(4)
(4) On sale for delinquent taxes or assessments.
77.25(6)
(6) Pursuant to mergers of corporations.
77.25(6d)
(6d) Pursuant to partnerships registering as limited liability partnerships under
s. 178.40.
77.25(6m)
(6m) Pursuant to the conversion of a business entity to another form of business entity under
s. 179.76,
180.1161,
181.1161, or
183.1207, if, after the conversion, the ownership interests in the new entity are identical with the ownership interests in the original entity immediately preceding the conversion.
77.25(7)
(7) By a subsidiary corporation to its parent for no consideration, nominal consideration or in sole consideration of cancellation, surrender or transfer of capital stock between parent and subsidiary corporation.
77.25(8)
(8) Between parent and child, stepparent and stepchild, parent and son-in-law or parent and daughter-in-law for nominal or no consideration.
77.25(9)
(9) Between agent and principal or from a trustee to a beneficiary without actual consideration.
77.25(10)
(10) Solely in order to provide or release security for a debt or obligation.
77.25(11)
(11) By will, descent or survivorship.
77.25(12)
(12) Pursuant to or in lieu of condemnation.
77.25(13)
(13) Of real estate having a value of $100 or less.
77.25(14)
(14) Under a foreclosure or a deed in lieu of a foreclosure to a person holding a mortgage or to a seller under a land contract.
77.25(15)
(15) Between a corporation and its shareholders if all of the stock is owned by persons who are related to each other as spouses, as lineal ascendants, lineal descendants or siblings, whether by blood or by adoption, or as spouses of siblings, if the transfer is for no consideration except the assumption of debt or stock of the corporation and if the corporation owned the property for at least 3 years.
77.25(15m)
(15m) Between a partnership and one or more of its partners if all of the partners are related to each other as spouses, as lineal ascendants, lineal descendants or siblings, whether by blood or by adoption, or as spouses of siblings and if the transfer is for no consideration other than the assumption of debt or an interest in the partnership.
77.25(15s)
(15s) Between a limited liability company and one or more of its members if all of the members are related to each other as spouses, as lineal ascendants, lineal descendants or siblings, whether by blood or by adoption, or as spouses of siblings and if the transfer is for no consideration other than the assumption of debt or an interest in the limited liability company.
77.25(16)
(16) To a trust if a transfer from the grantor to the beneficiary of the trust would be exempt under this section.
77.25(17)
(17) Of a deed executed in fulfillment of a land contract if the proper fee was paid when the land contract or an instrument evidencing the land contract was recorded.
77.25 Annotation
Corporate stock constitutes "actual consideration" under sub. (9). Gottfried, Inc. v. DOR,
145 Wis. 2d 715,
429 N.W.2d 508 (Ct. App. 1988).
77.25 Annotation
A principal/agent relationship for purposes of sub. (9) must be examined as of the date of the conveyance. Washington National Development Co. v. DOR,
194 Wis. 2d 567,
535 N.W.2d 71 (Ct. App. 1995).
77.25 Annotation
Exemptions are strictly construed against granting the exemption. While subs. (15m) and (15s) exempt transfers between family members and family business entities, they do not exempt transfers from one family business to another even though the same transaction, had it been completed in 2 separate transfers, would have been exempt. Wolter v. DOR,
231 Wis. 2d 651,
605 N.W.2d 283 (Ct. App. 1999).
77.255
77.255
Exemptions from return. No return is required with respect to conveyances exempt under
s. 77.25 (1),
(2r),
(4) or
(11) from the fee imposed under
s. 77.22. No return is required with respect to conveyances exempt under
s. 77.25 (2) unless the transferor is also a lender for the transaction.
77.26
77.26
Powers of investigation, additional fees, refunds, penalties.
